In the inaugural year of legalized iGaming operations in Connecticut, the fiscal landscape for two of the state’s prominent casinos, Foxwoods Resort Casino and Mohegan Sun, painted a picture of declining net revenues for the year ending September 30, 2023.
Connecticut Casinos Game Revenue
Foxwoods Resort Casino: Beyond the immediate revenue statistics, Foxwoods Resort Casino, owned by the Mashantucket Pequot tribe, embarked on a journey through the evolving terrain of online gaming in Connecticut. In their first full year of legal iGaming operations, both brick-and-mortar casinos grappled with a decline in player engagement. Despite a modest 0.5% decrease in net revenue compared to the previous year, Foxwoods reported a more notable 1.2% decline in gaming revenues.
However, a silver lining emerged as non-gaming revenues experienced a commendable 2.4% increase, driven by rising food and beverage sales. Gaming remained a significant contributor, accounting for 74.5% of Foxwoods’ gross revenue in fiscal 2023, albeit slightly down from the previous year. The addition of approximately 100 full-time equivalent employees reflected in rising payroll costs. By the end of the fiscal year, Foxwoods carried a substantial amount of indebtedness, totaling $2.15 billion.
Mohegan Sun: On the other side of the spectrum, Mohegan Sun confronted its own set of fiscal challenges and revenue declines. In its annual report, Mohegan Sun revealed a net revenue of $920.2 million, marking a 2.1% decrease from the previous year’s figures. This dip was primarily attributed to a decline in gaming revenue from slot machines and table games. However, a silver lining emerged as higher revenues from food, beverage, and entertainment offerings partially offset the decline. Mohegan, a diversified hospitality company with properties spanning across the United States, Canada, and South Korea, reported a company-wide revenue of $1.67 billion in fiscal 2023, showcasing a 5.1% increase compared to the previous year. Mohegan Sun, a key contributor, accounted for approximately 55% of the company’s total revenues.
Despite fiscal headwinds, the Mohegan Tribal Gaming Authority’s Q4 fiscal results reflected a commitment to diversity and inclusion, with Mohegan Sun proudly earning a spot on Newsweek’s America’s Greatest Workplaces for Diversity list for 2024. This recognition underscores the casino and hospitality giant’s belief in diversity as a vital component of business success, emphasizing genuine respect for individuals from diverse backgrounds.
In the fiscal year of 2023, Connecticut witnessed a decline in revenues for its prominent casinos, Foxwoods Resort Casino and Mohegan Sun. The challenges and adjustments brought about by the inaugural year of legalized iGaming operations played a pivotal role in shaping the fiscal landscape for these establishments. While both casinos faced decreases in net revenue, they navigated the evolving online gaming landscape, adapting to changing player engagement dynamics.